Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1887-09-09
The Long Expected Baltimore and
Ohio Deal is Brought to Head
ard is Legally Clinched.
The Road VIII be Run In HARMONY With
other Trunk Lines Including
tie Pennsylvania.
delphia and London Parties to select
a Suitable a1aaagsr.
TIE pAPERs SIGNED.


developments were hanging over the
railrosd and telegraph world were OK
pl:iued and made public late this after
noon. After breaking eli the negotiations
with Ives & Co, Mr.. Garrett went TO
London, where the negotiations
were continued with J. S. Morgan.
2nd to-day The deal was announced.
The C0rsummatiOn OF the contract made
o-d@y was held in abCygECe until his
opinion was Obtained o. the question OF
whether the sterling loan made by the
Baltimore and Oli0 Bsllway Company
covered the telegraph system CT the com
pSnY. After studying the question in I'll
i.s aspects, he decided that The telegraph
lines were free from e.! liens, and on re
ce.ying this opinion, the agreement in the
nature Of preliminary contract WIS tX-
ecuevd tC-dey. The
PARTIES TO THE Contract
are the Baltimore and ONO Railway COM
D4ny ana q syndicate composed Of j s.
Morgan ( Co., Barring Brothers & Co.
Brown, ShipIey ( Co, tue London
Drexell, MJrgsn ( Co.; Kidder, PEABODY
x Co., and Brown Brothers & Co. C this
city, and DTeXel & Co. Of Philadelphia.
The most important point in the contract
provides that the management OF the COM
p2ny shall be placed in competent hands
satisfactory to the syndicate, VINO the
men ere VINO viii be satisfactory to She
syndicate cernOt be asCerJained, out j
Cass5l, weep president CT TIE PENNSYLVANIA
Railway Company, is generally believed
to be booked IS CARROTS successor. Sat-
isfaCtory contracts are also to be made
with tie PENNSYLVANIA and Reading Rli-
way5 on all business north Of Philadelphia
and with ell other trunk Lies ent; ring
New York, by which Gil anta2cDisn VIII
be resolved and insure the permare.t
working o! he Baltimore ard Ohio in
harmony with the
OTHER Trunk LINES,
In addition TO these contracts the line S
in process Of construction from phua-
delplis to New York VIII be suspended
il their construction lust as lhey are and
work On Staten Island viii be stopped
In consideration of these contracts being
sigued ara with control in their hanjs,
the syndicate agree 10 relieve the railway
from ies present embarrassment by p.O.
vlding $40, coo, 900 with which to take up
the floating deDt. This will be repre-
scented by $1,000 goo in Baltimore
and Ohio consolidated IS and s., 600 600
preferred stock. The floating debt as it
stands is s. ,000 600, mostly ipothe shape
Of certificates OF Indebtedness, scrip and
notes. o. this sum, 81 600, 600 is said to
have matured on the first instant. one
OF the parties OF the syndicate authorized
the following statement:
"The position OF the Baltimore and
Ohio Railroad as an Ishmaelite in the rail
road, sleeping-csr, express and telegraph
business is given up. All the outside
enterprises viii be sold to parties
to whom they will be valuable.
The Western Union Will control if it does
not buy the telegraph line. The Pull
man Palace Car Company will take the
sleeping car business. The express pusi-
ness has already gone to the United
S ates Express Company. The affairs of
the railroad company will be entirely re
organized and placed upon a sound
financial basis"
DreXel, Morgan & Company were in
correspondence ell day with their houses
ID London and Philadelphia and Iste il
the evening confirmed the statement that
the contracts and negotiations given
above h&d been lust signed. Outside
Of the facts ABOVE they declined
to speak. The clause OF the contract
suspelding all work on the extension
frcm Philadelphia to New York is be-
lieyed to be the key note OF
THE sYND- Gates INTEREST
in the negotiations ard is construed
to mean that the Baltimore and Oaio
Rsilway when dIve5ted of all ex.-auevus
enterprises viii be operated by the Penn
sylyania Railway Company.
| The following has been issued 6T the
& - ",
liminary contract has been executed to-
dsy between the Baltimore and Ohio
Railroad Company, Bearings Bros. & Co,
Brown, Shipley 4 Co, London, and
: their alIIed houses on this Side.
( Of s., 600 coo OF Baltimore and Olio con-
/ so!jGated SIS and 5000, 600 Baltimore
! and Ohio preferred stock fer the purpose
/ Ci paying off the entire floating debt OF
/ the company aud placing il on G sound
/ financial basis. The conditions are as
| follows;
! l. The yerihcation Of the statements,
| etc, as made.
,. That the mans cement OF the com
! p&ny shall be placed IN competent hands
| satisfactory to the syndicate.
/ 3. That satisfactory contract shall De
made between the Baltimore and Ohio and
! other roads for New York business which
! shslI remove al antsgonism on the sub
I ject and insure the permanent working OF
| the Baltimore and Ohio In entire harmony
with the other trunk lines, and also avoid
the construction, or the threat of con-
struction, of expensive parallel lines
| north and east of Philadelphia.
The houses interested on this side are
| Drexel, Morgan & Co., DrexeI, Brown
Bros, and Kidder, Peabody & Co.
| IT BULLED THE MARKET.
NEW YORK, Sept. The developments
| published this morning regarding Balti-
more and Ohio negotiations were q
surprise to the operators in the stock
market, but they all formed the decision
to buy everything on the list at the
opening of the exchange, and prices
moved up with unexpected rapidity. The
excitement on the board was intense,
aud bankers bid &c above previous sales
in order to get stock ahead Of their COM
petitors. The principal gain was made
in Reading, which ct one time showed
an advance over Fridays close of
| jsc, and Manhattan recorded C. gain Of
sc. Toward the end Of business
the excitement subsidized and the impress
sion began TO grow that the benefs to
.cCrCe from the contract was everest
mated. One Of the heaviest operators in
the street said after the close, "TheTe is
no benefit TO be gained from the settle
ment except that which might accrue to
the creditors Of the Baltimore and Ohio.
They are essentially